Paul Erickson, former boyfriend of indicted Russian agent Maria Butina, pleads guilty to wire fraud

A Sioux Falls man who helped a Russian agent gain access to conservative political leaders has pleaded guilty in an unrelated case to defrauding investors in business scams. 

Paul Erickson pleaded guilty to one charge of wire fraud and one charge of money laundering, both felonies, on Tuesday afternoon in front of U.S. District Judge Karen E. Schreier. Each charge carries a possible maximum penalty of 20 years in prison.

An indictment says that between the mid 1990s to 2017, Erickson defrauded “many victims by means of false and fraudulent pretense, representations, and promises," according to a former press release from the U.S. Attorney's Office. 

"Mr. Erickson entered into a plea agreement with the federal government to resolve all charges leveled against him regarding his business practices of many years," Erickson's attorney Clint Sargent said. "In pleading to two counts all other charges will be dismissed, and this ordeal for Mr. Erickson will come to an end.  There are no other investigations of any kind in which Mr. Erickson is cooperating with the government.  Rumors to the contrary are incorrect."

Erickson's charges are unrelated to his aiding former girlfriend and Russian agent Maria Butina in accessing influential political leaders before and after the 2016 presidential election. 

More:South Dakota ex-boyfriend of Russian agent Maria Butina indicted

Erickson was accused of defrauding investors in a proposal to develop land in the North Dakota Bakken oil field by persuading people to buy real estate and build single-family homes. One person, identified as "D.G." in the indictment, wired $100,000 to Erickson as an investment in the project. The money laundering charge relates to transferring $1,000 of that $100,000 to someone identified as "M.B." 

Erickson wrote in a statement: “I did not invest the money from D.G. into the Bakken oil fields venture, and I did not repay D.G. any of the money he paid me.”

Erickson, 58, has been involved in politics since his college years, serving on various Republican Party candidates' campaigns. He pulled away from the spotlight in the early 2000s and returned to headlines after Butina was arrested last year and accused of failing to register as a foreign agent. Federal court documents say Butina planned with Erickson to influence Republican leaders through the National Rifle Association and to create a back channel between U.S. officials and the Kremlin. Erickson had helped her make contact with political officials.

Butina pleaded guilty to conspiracy to act as an unregistered foreign agent and was sentenced to 18 months in prison. She was released last month.

According to court records, Erickson communicated via email with Butina about his ability to connect her with U.S. officials in politics, business and media to help in her efforts to promote Russia. It’s unknown if Erickson could face additional criminal charges related to his effort to help Butina.

Erickson also helped Butina establish “back channel” relations between visiting Russian officials and U.S. officials during the 2017 National Prayer Breakfast, according to court documents. Erickson emailed an unidentified person and Butina that reaction to the Russian delegation’s presence would be “relayed DIRECTLY” to the Russian president and foreign minister.

Erickson is scheduled to be sentenced in March. 

Email reporter Danielle Ferguson at dbferguson@argusleader.com, or follow on Twitter at @DaniFergs.